IndustryNovember 5, 20264 min read

Mexico's Aerospace Sector Pursues Modernization as Growth Slows

Mexico's aerospace industry is expanding production and maintenance facilities while working to strengthen engineering, technical training and safety oversight. Those efforts come as the industry forecasts slower growth in 2026 and aviation regulators prepare for a U.S. safety assessment decision in February 2027.

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Export strength amid weaker investment

Mexico ranks fourth worldwide in aerospace exports, with shipments of approximately US$10.7 billion. Its production base spans about 386 companies in roughly 19 states, according to The Rio Times. The United States takes around 80% of those exports, with Canada and several European markets accounting for the rest.

The Mexican Aerospace Industry Federation (FEMIA) forecasts growth of about 7% to 8% in 2026, compared with nearly 10% in 2025 and double-digit rates in recent years. The federation attributes the slowdown to uncertainty surrounding the USMCA review and tariffs on materials.

Investment also weakened in 2025. Economy Ministry figures reported by The Rio Times show that foreign direct investment in aerospace equipment manufacturing dropped 49.6%, from US$340.7 million in 2024 to US$171.8 million. The industry received 0.4% of Mexico's total foreign direct investment that year.

Building engineering capacity alongside production

Manufacturing generates 79% of Mexico's aerospace industry revenue, while design and engineering contribute 11%, according to the U.S. International Trade Administration. Mexico Business News identifies technology adoption and workforce development as necessary to expand the sector's engineering capabilities.

Work on electric air taxis and advanced composite structures is prompting suppliers to adopt digital tools. Companies are using platforms such as Dassault Systèmes' 3DEXPERIENCE to connect engineering with manufacturing and maintain traceability from digital mock-ups through component delivery.

Production clusters in Baja California, Querétaro, Chihuahua and Sonora continue to expand their export capacity. Baja California recorded US$116 million in regional shipments in the first quarter of 2026, ahead of Querétaro's US$94.7 million.

Safety review sets a regulatory timetable

Mexico's Federal Civil Aviation Agency (AFAC) received 21 technical, operational and administrative observations from the U.S. Federal Aviation Administration on October 14, 2026, according to Aviacionline. The report followed an International Aviation Safety Assessment covering 339 items, including an on-site audit conducted August 10-14.

The FAA is scheduled to return in December 2026 to check how Mexico addressed the observations, with a final result due in February 2027. Mexico has maintained Category 1 status since September 2023. A downgrade would restrict new services and the expansion of operations to the United States.

AFAC's approved budget rose to MX$803.1 million for 2026. The funding supports stronger security protocols, surveillance infrastructure, including drone defenses at AICM, and preparations for FAA evaluations. Agency funding is slated to reach a record MX$1.4 billion in 2027.

Mexico and the United States are also reviewing bilateral aviation arrangements, including slot rules and 80/20 utilization thresholds, to protect cross-border route concessions.

Plant openings and maintenance projects

Several companies are adding capacity in Querétaro and Chihuahua. Safran opened its US$140 million LEAP engine maintenance facility in Querétaro on June 30, 2026, as part of an investment plan exceeding €1 billion. A day later, it opened an electrical wiring harness plant in Chihuahua. Safran said the Chihuahua plant would create more than 800 jobs by 2026, taking that site's workforce to 4,280.

Airbus completed a MX$646.7 million expansion, equivalent to about US$38 million, at its Colón, Querétaro, plant in June 2026. The project added 262 jobs at the site, which produces doors for A320, A321, A330 and A350 aircraft.

Other projects remain in development. Viva Aerobus is building a MX$4 billion maintenance complex in Querétaro, valued at about US$235.8 million and scheduled to open in 2027. ATI Materials has announced a US$80 million forging plant in Chihuahua with more than 230 jobs.

Querétaro is also seeking additional investors. State Secretary of Sustainable Development Marco del Prete Tercero said a European working tour identified about 50 small international aerospace companies as potential investors. He announced an agreement with ITP Aero to upgrade its Querétaro testing facility and laboratory. According to MEXICONOW, the state's aerospace cluster includes nearly 80 companies and supports roughly 15,000 to 20,000 jobs.

Training and supplier development

Pilot education and specialized technical training have lagged behind demand projected over a 20-year horizon. Through public-private partnerships, institutions including the Aeronautical University in Querétaro (UNAQ) are adapting technical curricula to the specifications of original equipment manufacturers.

Regional airport investments are intended to increase commercial jet capacity and ease logistics pressures near industrial corridors. FEMIA is also leading supplier development programs, pointing to precision machining and metalworking expertise in the automotive and oil industries that can be adapted to aerospace specifications.

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